Namibia’s Oil And Mining Industries To See Better Economic Growth

Namibia’s Oil And Mining Industries To See Better Economic Growth

On Wednesday, Namibia’s finance minister announced its economic growth forecasts for 2023 and 2024. He further announced a reduced budget deficit, primarily driven by robust performance in the oil and mining sectors.

Forecasts predict a 5.6% growth rate for the previous year and 4.0% for the current year, up from earlier estimates of 3.5% and 2.9%, respectively. Growth is expected to moderate to 3.9% in 2025, as per Ipumbu Shiimi’s budget speech.

The budget deficit for 2023–24 is estimated at 3.2% of GDP, down from 4.2%, and is forecast to remain at 3.2% of GDP in 2024–25. Shiimi emphasised that increased uranium production as a result of rising prices and ongoing petroleum exploration were the main factors driving the strong growth.

Although Namibia does not produce oil, significant interest from energy companies has been attracted following discoveries by TotalEnergies and Shell.

With a $750 million Eurobond maturing in October 2025, the government plans to retire $500 million at maturity and refinance the remaining $250 million in the upcoming fiscal year.

Shiimi also proposed corporate tax reforms to enhance competitiveness and a tax reduction for low-income households to alleviate financial burdens.